What is it about?

Very few studies considered the views of directors while analysing the board independence-CSR relationship. In this study, we examine how directors view the role of independence in enhancing CSR through boardroom interactions. The findings highlight the importance of developing policies and practices pertaining to board independence and CSR outcomes.

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Why is it important?

This study provides insights into the ‘‘black box’’ of boardroom dynamics. It highlights important contextual factors influencing director independence and CSR decisions. The perceptions of the directors about this relationship previously remained under-explored.


Boards of directors are responsible for ensuring sound corporate governance in organizations. In order for them to act independently of management and any undue influence, it is necessary to establish both 'formal' independence as well as independence 'in mind'. Independence in mind can be achieved through specifying the tenure of a director, and by establishing a formal and transparent appointment process. However, given the importance of director independence, it is surprising that, ASX Corporate Governance Council Principles and Recommendations does not specify a number or percentage of independent directors on Australian boards. Moreover, it leaves the tenure and appointment process of independent directors at the discretion of an entity to decide.

Ms Ranjita Islam
Queensland University of Technology

Read the Original

This page is a summary of: Director independence and its influence on corporate social responsibility decisions and performance, Social Responsibility Journal, April 2023, Emerald, DOI: 10.1108/srj-08-2022-0333.
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